Spokane City, Washington, Bans Crypto ATMs Following a Surge in Crypto Crimes

Authorities have ordered the removal of crypto ATMs in Spokane, Washington, within the next 60 days, invoking a citywide ban.

On 17 June 2025, members of the Spokane City Council’s legislative session unanimously voted in favour of removing all crypto ATMs from the city. An astronomical rise in scams targeting residents of the city triggered their decision to remove these kiosks.

Spokane just banned crypto ATMs after scam reports exploded. In a unanimous vote, operators get 60 days to tear down kiosks or face hefty fines. Learn how scammers preyed on vulnerable residents. Read the full story: https://t.co/46VqURP11z pic.twitter.com/qNIqBqgImZ

— The Bit Gazette | Crypto and Web3 News (@thebitgazette) June 18, 2025

Council members Paul Dillon and Council President Betsy Wilkerson introduced an ordinance titled “Virtual Currency Kiosk Prohibition for a Safer Spokane” to combat increasing crypto crimes faced by residents in connection with the crypto kiosks.

Council member Dillon said, “This ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks, and I am proud we are the first city in the state to move this legislation forward.”

The Spokane Police Department will oversee adherence to the ban and assess its effect on scam-related crime rates. Furthermore, if the operators do not remove the kiosks within the 60 days granted, they could face non-criminal violations, including revocation of their business licenses.

Data from the Crypto ATM tracker Coin ATM Radar shows that the city of Spokane currently has over 40 crypto kiosks.

Explore: 10+ Crypto Tokens That Can Hit 1000x in 2025

Scammers Impersonated Law Enforcement Officers To Coerce Victims

Interestingly, Spokane City’s ban on crypto kiosks is a part of a broader trend in the US, where a rise in crypto crimes has consequently spurred the local and state governments to tighten their oversight on crypto kiosks.

Detective Tim Schwering of the Spokane Police Department has worked with several victims of crypto fraud related to these kiosks and supports the ordinance introduced by the council members.

He said that funds sent through these kiosks inadvertently ended up in places such as China, Russia or North Korea.

Regarding the modus operandi of the scammers, Schwering said that the culprits would often impersonate law enforcement or tax officials and coerce their victims to convert their cash into cryptocurrency. Also, the scammers, as a standard, would claim that it was to protect their victims’ money.

Schwering added that by the time the transaction went through, it was already too late. Data shared by the FBI reveals that more than 11000 cases in connection with ATM crypto crimes were filed in the United States in 2024. Also, the majority of the victims were over the age of 60.

Total losses reported in connection with crypto ATM scams in the year 2024 are over $246 million.

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States Crack Down on ATM Crypto Crimes With New Regulations

Several states across the US have brought in their own rules and regulations to deal with the growing issue of crypto kiosk-related scams. In North Dakota, for example, House Bill 1447 is currently under consideration by the lawmakers.

The bill, if passed, will implement a $2000 daily transaction cap, a fraud warning in ATMs and make it compulsory for crypto ATM operators to deploy blockchain analytics to help detect suspicious activity.

Nebraska has already implemented its Controllable Electronic Record Fraud Prevention Act. Much of the law is similar to what North Dakota lawmakers are mulling over. The act caps transaction limits at $2000, requires ATM operators to be licensed, and caps fees at 18%.

Nebraska Gov. Jim Pillen has signed a law called the Controllable Electronic Record Fund Prevention Act to combat crypto ATM fraud, requiring operators to have a license with Nebraska’s Money Transmitters Act & register with the Dept. of Banking & Finance. https://t.co/hfV1PZ4Mse

— Bank Customer Experience Summit (@bcxsummit) March 15, 2025

Additionally, the act provides for a full refund to defrauded victims if the report was filed within 90 days of the incident.

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